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Crisis Management

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Crisis Management

Crisis Management

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  • 1. Crisis Management: An Overview An Overview
  • 2. Crisis Management:
    • Does your business have a War Room?
    • How much of your cash flow is automated?
    • Do you have ready access to a corporate decision making map?
  • 3. Crisis Management:
    • When conditions get worse, how much worse will they get?
    • How do you know?
    • Crisis management is the discipline and science of managing breakdown and recovery
    • Three examples ...
  • 4. Crisis Management:
    • If you’re executing an employee reduction program, do you:
      • Lay off staff to meet cost requirements?
      • Lay off staff to match the productivity stats of your competitors?
      • Lay off staff to bring new people with new ideas into the corporation?
  • 5. Crisis Management:
    • If you’re corporation is moving into a new business, market, or location , do you:
      • Plan to expand what you already know?
      • Plan to capture the benefits of the new business, market, or location?
      • Plan to start a conversation between the old and the new?
  • 6. Crisis Management:
    • If you’re watching a movie in a theatre and someone yells, “Fire!”, do you:
      • Panic?
      • Remain Calm?
      • Account for all of the panicky people in the theatre?
  • 7. Crisis Management:
    • Mastering crisis management requires mastering three kinds of learning:
      • Informational Learning - find problem, run solution
      • Motivational Learning - “I’ll be fine as long as I’m better than the next guy”
      • Transformational Learning - “I am new.”
  • 8. Crisis Management:
    • Mastering the three kinds of learning requires knowing what they are and knowing when to use them:
      • Informational Learning - efficient answers, cost / benefit, normal operations
      • Motivational Learning - energize and know the limits of your environment, your team, and yourself
      • Transformational Learning - Non-Linear, throw out the normal rule book, head for the war room
  • 9. Crisis Management:
    • Crisis management operates on multiple levels at the same time:
      • Corporate - Large, complex organizations are less able to manage a crisis because they are large and complex
      • Professional - Knowing a specialty or discipline well makes it harder to “jump outside your own box”.
      • Personal - You can’t see what you’re not equipped to see; you can’t do what you’re not equipped to do
  • 10. Crisis Management:
    • Fundamentals: Crisis management recognizes the choice between competitive, cooperative, and structural thinking
      • Competitive - “We will kill or capture Bin Laden”
      • Cooperative - “It’s time to sit down and talk with the Taliban”.
      • Structural - “we can adapt what we learned from the Anbar awakening to Afghanistan.”
  • 11. Crisis Management:
    • Use the principles of crisis management during normal times
      • Keep your plans efficient and set in a larger context
      • Keep your planners motivated and creative
      • Better preparation leads to better performance
  • 12. Crisis Management:
    • Choosing a crisis Management specialist
      • broad background - education and experience
      • experience matters, depth and breadth
      • Test their methodology and their creativity
  • 13. Crisis Management:
    • When you need a crisis Management specialist
      • If you’re ruminating, you haven’t defined the depth of the crisis, seek assistance
      • It may feel like you’re walking off a cliff
      • A crucible requires enough heat to change the ingredients but not so much heat as to melt the Pot!